♪ >> i am taylor riggs in san francisco, this is bloomberg technology. coming up in the next hour, start the prices. that is what facebook's news cap will do for publishers. plus, prime paying. one-day shipping is causing hurt now, but will benefit in the long run and

intel gave a fourth-quarter outlook that was seen as strong, pushing shares of the company higher. we bring you our conversation with the ceo, bob swan. the first to our top story. piling ons of critics facebook blaming it for altering the news industry, the social network is trying to make nice. on friday, facebook launched its by --and, articles chosen it's news tagged -- tab. there are more than 200 publishers on board. york, mark new zuckerberg outlined another way for news organizations to make money. >> you can run your own ads and get one is percent of the revenue or use our ad network which we have a lot of and people working to try to build advanced technology for this and

there, we give the vast majority ,f the revenue to the publisher but what we have really unlocked is a business model where it makes sense for both parties. to discuss in washington, it is daniel coffey, senior vice president of news media alliance and kurt wagner. give me your first thoughts. >> this is like the 10th time that they's book has attempted to make nice with publishers. efforts over the years to try and make publishers feel like they are getting something in return and not just putting stuff on facebook for free. i think we heard a little bit about the business. i think there are two potential lines of revenue. think that is better than some of the efforts they have made in

the past, but you have to understand a lot of publishers have been burned multiple times before, so everyone looks at this through a skeptical lens. >> danielle, from your take being involved in the news media, what are your thoughts? >> we view this as a step in the right direction and valuing the fueled news that have their ecosystem and allow them to flourish and make a tremendous amount of money, but is this adequate enough to sustain the news industry into the future? no, we don't believe it is. facebookven think believes it is. it is a step in the right direction. it does not cover all the local communities. a step in the right direction, but if all short. >> a step in the right direction, but kurt, talk to me.

how does this help facebook besides helping its image? does it help the bottom line? >> i don't think so, other than keeping publishers having a relationship with the network. you see bloomberg, washington journals, new york times lead facebook, i could -- i think that hurts the bottom line. it is certainly a goodwill gesture. and theve in journalism mission and as a result, we want to help you out. i don't see a financial benefit and in some ways that is a good thing will stop >> we should note that bloomberg is a publisher -- good thing. >> we should note that bloomberg is a publisher on facebook's news tampa -- tab. how does this help the image of the company because frankly,

they need it. >> there was no secret and you were just talking about the bottom line as to whether it helps facebook. it helps thedoes, readers consume content. to theirssential current and future business model. when they proposed to the terms they did, it was in a way that you would never conduct a normal negotiation. in secret ande publishers can't talk to one another, that is not a unchaining business model, so it does serve the bottom line and it serves their ecosystem, but what we are looking for is how us, the back to originators of the content. >> there's a lot of national organizations participating in this.

zuckerberg did talk about how it may impact some of the local coverage hit hardest. take a listen. >> local papers have probably been hit hardest. we are also building a separate .ag, including local news earlier this year, we announced a $300 million commitment to journalism and helping a number of publishers with a special focus on local news. i don't pretend that any of or we asl be enough one company will be able to solve the issue. your thoughts on if it goes far enough to help some of the local coverage that has been hit the hardest. >> it is difficult to determine whether the traffic that comes in is specific, but the monetization that you get from the advertising business model

is pennies. as far as what we are experiencing, we are not getting adequate return because the traffic that generates the advertising dollars is not enough to sustain the news content that we generate. it does not help the local need to be able to get a sufficient return on cap,and with the new news it did not cover everybody, it covered the markets and while we are happy about that and it is a step in the right direction, is it covering local communities where they need it most? it is not. both.t wagner, thank you customers that they may lose power and this

comes after kevin newsom declared a state of emergency for the counties of sonoma and los angeles because of the kincaid and tick fire's. you cannot deal what is there. that is the approach they are taking to protect your data. we hear how they can achieve that. up next, this is bloomberg. ♪

>> securing customer data online is a hot topic across the globe and one company says it has a unique approach to handling sensitive information.

it has a unique approach to handling sensitive information. very good security lets companies access that information without ever needing to hold on to the data themselves. they have a $35 million funding round led by goldman sachs. ceo.ore, seo -- the talk to me about the funding. congratulations. what are you using the money for? >> thank you. we are very excited to partner with goldman. both marshall and i are very thankful, but really the big idea is to completely , socratize data security the funding is going to follow where we will invest in r&d and hiring sales, marketing and expanding growth. goldman sachs big-name backers, why are they interested in you? in the see a shift

market. one of the biggest issues we see releaseously you had to data going and an out of data centers and that approach 15 is moreo, it increasingly becoming a liability, so when they see a shift happening, how do you catch up with data in advance and build a solution that can with data allet over the place? >> is this purely a data privacy issue. they have talked a lot about digital currencies and making a play in that area as well. excited toery partner with goldman. they are a very respectable excited to

partner with goldman. they are a very respectable partner. i can't comment on a specific initiatives, but there are a variety of good reasons why they are interested. >> you started out this conversation as a classic silicon valley company. talk to me about valuation and if you are cash flow positive in way you can see profitability? >> we can be profitable if we choose to. but, we do not. we took the funding and wanted to move faster than if we had just been by ourselves and so the idea is that next year or the are after we could be profitable, but what happens if you're able to get to that position today? the reason we took the money is to accelerate two years, three years of our timeline, so we are not too worried about cash flow volatility. we can become a but we want to capture the market today. ceo of pgs, thank you -- vgs,

thank you. shares of amazon in the red in order to increase spending for getting packages out in one day. side, throughout density and other things, will ,mprove over things -- overtime but for now some startup pain in adding capacity. >> talk to me about this. it was the profit decline everyone is worried about, but are you struggling -- shrugging it off because every time they invest, revenue follows? 1.8%, wellk is down above the market lows after yesterday where it was

down like 7%. this is a move that a lot of investors have seen before and it is a reseller asian of growth . people were worried that amazon retell was slowing yesterday dow it seems like next day delivery has accelerated it. that is nothing to the long-term investors and analysts. as to whether pays off, it looks as to whether pays off, it looks like next a shipping -- so many companies like walmart and target have caught up, so amazon is trying to go further and read aroundcompetitive mode its main business. >> if one day shipping was so good, why did they come lower on the top line? history frankly

on history frankly on this got in because they are always very conservative. i think the top line surprised this quarter and we will see what it does for the holidays. [no audio] >> some holidays abroad including india, some of that when into the third quarter. we will see. i think the pattern for next day shipping does make a difference. my colleague was wondering's for longng -- wondering for so what is growth for amazon iswdown, so the evidence that next a shipping moves the needle, but we will see. >> you are also going to be sooner than you think conference . you are out there next week. what are you looking for? >> we have this conference three times a year.

we try to take a different approach. we are talking about solutions to the moment that tech finds itself in. we talk about the antitrust investigation and we have panels on privacy focused design and security. we have [no audio] from google, christian harris, how we can have a more productive relationship with the colleague and your caroline will be cohosting with me where we designed a deepfake video involving her and she is going to get into deepfakes and the impacts they will have on our culture going forward. >> this is also noticeable because it is in brooklyn and not san jose, san francisco, not in silicon valley. in all your years covering tech,

have you started to see this shift over to the east coast? >> this is more about connor programming. there are plenty of conferences in california. we thought we would experiment with an event on the east coast and we have the ceo of the next -- nets coming to talk to us and the nba is interested in a relationship. san francisco and silicon valley, still the center of the tech universe. if there is a threat, it is an ana and asia and beijing. tech is growing and i think it is more dispersed across many cities including new york and washington, dispersed across may cities including new york and washington, d.c. than it has been historically.

>> as long as it is in san francisco we can keep our jobs and other day will stop that was brad stone, thanks for joining. up, gains for intel after the company give an update. we hear from the company's ceo .ext this is bloomberg.

♪ >> intel give an update for the fourth quarter, improve demand that powernductors cloud computing. allen and shery ahn spoke with bob swan earlier. take a listen. >> we outperformed in the quarter and we expect about 200 million of that was pulled from the fourth quarter in light of the anxiety about the products, so not a whole lot of it, but some of it, but despite that, we did take up our fourth-quarter outlook as well. >> you said you are reviewing

your supply chain in the context of trade disputes. i'm wondering if you could share any insights. are you making any changes? >> i think for our customer base, china is an enlarged market for us in terms of customers for china consumption, but also for global oems that have more of their assembly and test operations. in light ofsaying the debates around tariffs, we are trying to work with our customers to ensure they can get by product most effectively leveraging our global supply chain to diminish the impact that tariffs could have on their supply for global markets, so we have a wonderful supply chain want our customers to be able to deal with the dynamics we are wrestling with.

encouragedwe are that china and the u.s. are talking because we are a strong and wer in global trade don't find tariffs to be a constructive mechanism for global trade, so we are very encouraged. in the meantime, we will global supply chain to mitigate the impact on customers around the world. >> what are your shipments of huawei looking like? >> we don't really get into talking about specific customers. they have been an important customer of ours and we continue to see them to be an important customer going forward, but at the same time, we have to adjust and a doubt to the laws in the markets we serve. we will continue to serve them to the extent that we are allowed to. >> are you getting the temporary

layson -- licenses? >> i think the semi conductor industry, we have put applications and to get licenses to ship, but we have not heard back yet. hear sometime soon, but we have not heard back yet. swan.t was intel ceo bob he spoke to us from the new york stock exchange. >> at a time when the management team is mature and the company has a leading advantage on the market, then we can make the decision whether or not it should go public. ,> despite the trade tension they still chose to go public in the u.s. following in the

footsteps of [indiscernible] bloomberg caught up with the ceo following the company's debut on the new york stock exchange. >> our parent company has always been a u.s. listed company and we really like the markets because they have treated us .ell us, we think at least we are not doing trade related business and i would expect it to be a very good way to connecting the u.s. and chinese people. one of my last questions, what was your reaction to the opening price about 20% lower?

do you think investors are pricing the right value? >> i think we operate for the long-term. getting an ipo is exciting for us and it is a very good way for us to attract that her talent company.more respected we think it is the right move and we are very confident in our plan, so we think this is a new starting point. >> that was the you dow ceo at the new york stock exchange. coming up, we recap the biggest stories in tech. forecast.isappointing all of that is next. this is bloomberg. ♪

taylor: this is bloomberg technology. i'm taylor riggs. now to our weekly roundup of the top stories in tech. this week started with the quarterly earnings bonanza. amazon shares rebounded on friday after the company reported its first quarterly drop in profits since early 2017. the company reported a miss for next quarter's guidance as well. to discuss, i'm joined in new york by -- shira ovide. is in san francisco with me executive editor tom giles. i cannot remember what city i and in. shira, let me start with you in

new york. you had a good piece talking about the one bright spot of amazon which was the cloud business is starting to show signs of cracks. why? shira: i don't want to get hyperventilated about one ok quarter, a couple of ok quarters but remember amazon web service is extremely important to amazon both financially and strategically. even though it has about 1/5 or so of the revenue of amazon's e-commerce operations, it generates more operating profit than all of them, than the e-commerce business. that shows you amazon needs aws to work in order to generate total profits for the company. in this third quarter, what you saw was both the slowest quarterly growth rate for aws since amazon started breaking up those results five years ago, and a margin, a profit margin that was at least by amazon's

standards not great. that combination was a little bit worrying. taylor: tom, we look at the prophets so much because the company heavily invests, but analysts are defending the stock. every time you see big investment eventually leads to growth? tom: that is what happens with bezos. he is willing to spend heavily. we were doing the math on this. is analysts ' expectations 24% higher than where it closed today. analysts are telling their clients buy these shares even at these near record levels for amazon. despite the concerns about profitability, i think shira raises really good points, people are falling over themselves to recommend this stock. the belief is, yes, it costs a lot to do that one day delivery but it will pay off because people want their stuff and they wanted quickly. taylor: we also go over the

earnings of twitter and we saw a revenue fell, in part, because they stopped a glitch that abused customers' data and their privacy. where are they going to make up that revenue? shira: it was lower than people, including twitter, expected, both in the third quarter and the forecast for the fourth quarter. i agree. i thought it was very concerning, but the reasons for the revenue decline which is basically twitter fixed what it itsed errors in a few of products including settings, where basically it was ignoring people's privacy preferences. as a result, it turned off some ad targeting it previously turned on in violation of people's trust. as a result, revenue growth fell short of the company's forecast, both in the quarter and ongoing basis. to me, this raises questions about just the help of twitter's advertising business.

it could have a revenue growth shortfall because of a couple of setting changes that should not have been there in the first place, then maybe this ad business is not on such solid footing after all. taylor: i want to switch to another story outside of earnings where we talk about facebook and libra. mark zuckerberg was on capitol hill on wednesday. one of the first things he said before talking about libra was his take on political ads. he has come out and said we are not going to moderate. we believe in free speech. tom, and all of your years of covering this, is that the right approach? tom: not if you are alexandra because jo cortez. she took him to task on this. that was one of the most interesting and memorable interchanges of this several hours he spent to questioned by lawmakers, was her going into very specific instances of what if i buy an ad that say the

republicans were backing the green deal? what if i buy an ad that says this? he basically said this is something we would not bar you from doing. he's really going to be called to task for that, especially what happened and 2016 when there was so much disinformation that was spread on the facebook platform. this is going to come back and haunt them time and time again. in my view, it is a matter of time before you are going to have some backtracking and more mea culpas from facebook on this one. taylor: as we take a look at the testimony and transition to libra, did we learn anything new about libra this week? shira: what we learned this week is libra is not going to happen, at least not any type in the foreseeable future. zuckerberg in his opening statement said they will not move ahead with libra unless and until there is regulatory approval in the u.s.

i don't envision a scenario where that happens in the foreseeable future. maybe we should all stop thinking about libra for the time being. taylor: dead on arrival, we should stop taking about it? tom: i think there is going to be a continual debate -- there was going to be discussion over is this the right thing to do? what is facebook doing -- why are they putting so much effort behind it? i do think it gets put on the back burner, but i don't think the discussion is going to go away. i think people are going to continue to debate, whether it makes sense for me as an uber, lyft or spotify to be part of this if and when it gets off the ground. taylor: we all know it would not be a news debt if we did not talk about wework and softbank. shira, you have another scathing article on wework and softbank. walk me through what it could get worse for wework? shira: this is a story that keeps getting wilder and weirder. the thing i'm a little concerned

about for wework is it got this bailout, this kind of financial emergency -- basically, it is a loan from softbank or arranged by softbank for $5 billion. buysder how much time that this company. remember that as of june 30, they had $2.5 billion worth of cash on the books. enough money to carry them through for a while. all of a sudden, the ipo didn't happen and it emerged this company was going to shut its doors and run out of money and

weeks. i just wonder what is the real cash need of this business, particularly now that they are going to, we think, lay off a couple of people, pay them severance, and so on? how much time does $5 billion by this company? the other issue is they have signed leases, they committed themselves to making $47 billion in lease payments, for a company that bleeds cash. those two are pretty big concerns. both the rate of money they have been going through and the amount of money that they are committed to paying in future years. taylor: tom, softbank look financially savvy here for are they throwing bad money at more bad money? tom: they have little choice. they are so deeply in on wework right now, you cannot just pull the plug because all that you have at stake is at risk. we've also talked to people familiar with the matter yesterday -- you talked about it here. we are looking at a write-down for them of at least $5 billion. we will get more visibility on that in the coming days when softbank reports. there has been a lot of scrutiny right now into softbank's investments, its attempts to raise vision fund 2. are they good at making bets? a couple of their bets right

now, uber and wework, not looking smart. taylor: the $5 billion write-down could really just be the beginning. that was tom giles and shira ovide. thank you both. now, sticking with wework, the company has investors thinking about the profit roadmap for private and public companies alike. one activist investor says it is a great example and the penitential and nothing like wework. >> the wework issue has a lot to do with leverage, contingent liabilities and other aspects. this is still a good business. it is a well-capitalized business. this is a very healthy company with growth. it is growing a little slower than it used to be, but it is still a growing bosusiness. even though the profit margins are not where we think they could be, it is now a slightly profitable company. yes, from our standpoint, we think it should be more profitable. as i just talked about, we think

there is a real opportunity to both reinvigorate growth, as well as to balance that with improved profitability. box has that opportunity. we are excited about it. we think the product is really good. rated very highly. it's cloud content management sharing. a terrific company, but it could be worth more. taylor: that was star board value ceo jeff smith. coming up, we haear from susan lynn about the latest developments in big tex antitrust. plus, the former president of abc entertaining gives her her thoughts on the upcoming streaming wars. this is bloomberg. ♪

taylor: let's take a look at the

top tech calls. shares of nvidia close friday higher after raising the price target to $251 from $217. the chipmaker was the best large cap name to own at the time. the quarterly results saw strong growth in data center products. the analyst said nvidia would be a gain or on that news. speaking of intel, credit suisse raised the price target on intel from $65 to 68, saying growth margins were the only blemish on the report. it says it provides more positives than negatives. analysts at bmo raised alphabet's price target to $12.45 to $12.25 a share. credit raise the price target to $2700 a share. the products are driving strong growth of search and youtube. those were a look at the top

tech calls. and now, for our conversation with susan lyne, former abc entertainment president. lyne massar sat down with for a wide-ranging conversation on the upcoming streaming wars, big tex antitrust, and investing in female founding startups. susan: i do believe there is too platforms in too few at this moment. that is always dangerous. whether they get regulated, whether they get broken up, that is for other people to decide, but i don't think you could leave things the way they are where a single platform like facebook has the power that it does. carol: bbg ventures, are you finding all the opportunities you want? we talked before we got started about there is so much capital out there with private equity.

are you finding enough opportunities? susan: my gosh. absolutely, we are. we have seen 5000 companies with a female founder since we launched bbg ventures five years ago. carol: this is what you do. there has to be at least one female founder. susan: exactly. we do that not to be a do good organization, but because we think there is a real competitive advantage to having a founder who intuitively understands the end-user. women are the dominant consumer. we're responsible for 80%, 85% of all consumer purchases. in all likelihood, if you are building a consumer product or you are building a consumer service, women are going to be the early adopters. they are going to be the people who determine whether or not you scale. so, we saw both an opportunity because the risk in the venture capital world was focused on

something else. we saw big opportunity to invest in the best of these female founders. carol: i know you have been on corporate boards, are on corporate boards. i think it is getting better in terms of female representation. what do we need to do to get better where there is really parity? susan: when i think about it, it should be diverse at all levels. carol: what does it take to get there? we have been having this conversation for a long time. susan: absolutely. in my world now, the venture-capital world, i think it takes probably five to 10 female founded companies going public and maybe five to 10 exiting as unicorns for there to be a major shift. carol: we are already seeing a boys clubstoried, old vc's bring on their first female partner. and it is all because of fomo. they fear they are going to miss

the next wave of big successful companies. so, you have to have somebody on your team, on your investing team who has those networks. who knows those women and who can make sure your firm gets a chance to at least compete to invest. that's what's going to change it. carol: in terms of investing, you make investments. i'm curious, is the endgame still taking companies public? we have seen what an interesting year with wework, ipo's. what is the ultimate endgame but does that not have to be it anymore? susan: i think that more companies end up getting sold than go public. that's always been the case. ofo think there are a number female founded companies out there that will go public during

the next, let's call it, two years, three years that are on that trajectory. that are preparing themselves for it and trying not to make the same mistakes. the real issue for the companies that have gone public and that have either failed -- carol: or get there. susan: they were focused on growth over everything else. they went public still losing billions of dollars. in some cases, billions of dollars a quarter. the public markets said we don't like this. there was clearly a big disconnect between what the private markets valley right now and what public markets are looking for. i think the female founders i have seen out there, they are watching this very closely. and, so are every vc.

and, i do think there are lessons that have been learned that you have to take seriously more than just, you know, setting your growth. you have to be able to show there is a business model here that can be successful even if you are not profitable right now. that there is a path to profitability that is very clear. taylor: that was susan lyne of bbg ventures and bloomberg's carol massar. coming up, private companies are tapped to create space habitats once the international space station retires. we explore the theme by one boston-based company. that is next. this is bloomberg. ♪

taylor: over the past few decades, the international space station has allowed astronauts to live, work and conduct research. with the station's planned

retirement by 2030, private companies are being asked to create the next generation of space habitat. a.i. space factory is an architecture firm in boston which reverses an idea to send 3d printing robots to mars which can then harvest the materials found on the site to build the next generation of space habitat on mars. its technology is on the cutting edge. >> we will return american astronauts to the moon. not only to leave behind footprints and flags, but to build a foundation we need to send americans tomorrow's and beyond -- to mars and beyond. >> this proposed mission along with spacex's own mission to reach the red planet is affecting the long-term market and some companies are already thinking about orbiting habitats like space stations to build on the surface of other planets. >> i was working on a firm designing skyscrapers. i saw elon and he landed his rocket on the middle of the

ocean. that was a trigger. i thought this could actually happen. it has always been my dream to put a building on the moon, on mars. if he is going at the pace he is going, it could definitely happen within my lifetime and i want to be the one to build it. startupss warehouse, from across the u.s., architecture firm a.i. space factory is designing the production of a structure they created for nasa competition to design the next generation of space habitat on mars. >> when you start designing a mars habitat, you look at everything that has been done already and toss that aside. we were given a set of guidelines from nasa. they think the best way to build a habitat on mars or the moon is to use resource utilization. use the materials that are there. if you have seen sci-fi movies, you have maybe seen glass and steel domes, but the reality

to ship that kind of material would be so expensive, you would never be able to build in the first place. the idea is to send a 3d printing robot which can then harvest the materials you find on the site and build it. >> the reasonable print material is biopolymer used by recyclable thetic or sugarcane, and rocks found on mars and earth. >> it is a rock that gives us incredible strength. it is three times as strong as concrete in compression and it has the ability to prevent itself from being pulled apart. you need to think at all times how you optimize the amount of material that you use. that is also why this thing is shaped like an egg. if you think of an egg, it is structurally optimized. it is very thin but provides the strength the big needs. that is why it is shaped the way it is.

>> the big shape and the nest structure also accommodates for extreme differences in pressure and temperature on the surface of mars. more research still needs to be done to find out how print materials could be gathered and how 3d printing could work in a unique environment of space. >> you are dealing with a completely different set of physics and environments which is very harsh. the cold, the low gravity, the vacuum of space. and, finding solutions for how to build or do anything in space just requires a high degree of innovation. there is no such thing as brute force when it comes to space. you need to pick about the problem, find a very elegant, cost-effective solution. the next challenge is really going to places on earth, taking the dirt we are finding on a site, we have to perfect this technology on earth. then, we need to prove it on the moon and finally onto mars.

>> the first customers could include nasa and companies like space acts which would lease out the structures for individual missions. before that, a.i. space technology helps their technology can be monetized and transformational on earth. >> the challenges of building on mars forces us to make this jump in construction technology which we could apply on earth to build more sustainably. instead of building on steel and concrete, these very manufactured materials, to go to a site and then allow our 3d printer to print in the most sustainable way possible. we never would have found these ways if it was not for the challenge of building in space. ignition, and lift off of the falcon ix to the space station of the first commercial launch of kennedy space center's historic pad 39-a. taylor: that is part of our special bloomberg original series called giant leap.

you can find out more on bloomberg.com. that does it for this edition of bloomberg technology. we are livestreaming on twitter. check us out. follow our global breaking news network, tictoc, on twitter. this is bloomberg. ♪ devices are like doorways

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david: so why do you think some people do not believe there is such a thing as climate change? bill: they must not have taken enough science courses or something, i don't know. david: if you met with president trump, you could convince him on paris, to maybe get back in, or is it beyond your capabilities to do that? bill: someone else should do that. david: are you worried about the power of a.i. to disrupt our civilization, put people out of work? those kinds of things? bill: the increased productivity that will come from a.i. will create dilemmas. >> would you fix your tie, please? david: people would not recognize me if my tie was fixed, but ok. just leave it this way.